Karnataka Chief Minister H D Kumaraswamy, while keeping up the promise of farm loan waiver costing the state exchequer Rs.34,000 crore, announced hike in tax on electricity, petrol, Diesel and liquor besides the motor vehicle in the Rs 579 crore deficit Budget for 2018-19 presented in the State Assembly on Thursday.
Presenting his maiden budget that will hit the common man and provide some relief to the farmers Kumaraswamy increased the sales tax on petrol to 32 per cent from 30 per cent, while the sales tax on diesel would be up by two per cent at 21 per cent. Despite the modest increase of Rs.1.14 per litreon petrol and Rs.1.12 per litre on diesel, the rates would be lower in the state when compared to the neighbouring states, he said.
Mr Kumaraswamy said revenues from Excise department is crucial for the state and a revised target for the current fiscal was set to mop-up Rs 19750 crore from the earlier Rs 18,750 crore. At the end of June, 2018 Rs 4674 had been collected from this account. This hike would mean there will be an increase on the existing rates of Additional Excise Duty on Indian Made Foreign Liquor by four per cent across all price categories.
In case of Motor Vehicle Tax, the coalition government had fixed a revenue target of Rs 6656 crore. In MVT an increase of 50 per cent is proposed for private service vehicles based on square meter in of floor area. The existing rates of Rs 1100, Rs 1200, Rs 1300 and Rs 1500 will be increased to Rs 1650, Rs 1800, Rs 1950 and RS 2250 respectively.
The taxation on consumption of electricity is proposed to be increased from existing six per cent to nine per cent. The rate of taxation on consumption of captive energy is proposed to be increased from 10 paise per unit to 20 paise per unit.
In a farmers oriented budget Mr Kumaraswamy announced waiver of defaulted crop loans upto Rs.two lakhs availed till December 31, 2017 in the first stage. The measure would benefit nearly four million farmers across the state. He also announced that all the programmes announced by the previous government including those announced in the last budget of former Chief Minister Siddaramaiah on February 16 this year would be continued. (UNI)